Potash corp BHP POT Offer Plans to Formalize "Buyout Offer"

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POT Potash: BHP issues press release on POT offer 

Potash: BHP issues press release on POT offer; plans to formally commence its Offer by way of newspaper advertisement on August 20 (143.17 )

BHP confirmed its intention to make an all-cash offer to acquire all of the issued and outstanding common shares of POT, at a price of US$130 in cash per PotashCorp common share. The Offer values the total equity of PotashCorp at approximately US$40 bln on a fully-diluted basis... On 12 August 2010, BHP Billiton Chief Executive Officer Marius Kloppers made a proposal to PotashCorp's President and Chief Executive Officer, Mr William J. Doyle, to combine the two companies in which PotashCorp shareholders would receive US$130 in cash per PotashCorp common share. Mr Kloppers was advised by Mr Doyle that PotashCorp was not for sale and had no interest in discussing a combination at this time. Subsequently, on 13 August 2010, BHP Billiton Chairman Jac Nasser reiterated the proposal in a letter to Mr Dallas J. Howe, the PotashCorp Board Chair, requesting a response from the PotashCorp Board by 18 August 2010. On 17 August 2010, Mr Howe advised Mr Nasser by letter that the Board of Directors of PotashCorp unanimously rejected BHP Billiton's proposal, and PotashCorp made BHP Billiton's proposal and PotashCorp's response publicly available. Notwithstanding PotashCorp's current position, BHP Billiton would welcome the opportunity to work with PotashCorp to achieve a successful outcome to this transaction... BHP Billiton plans to formally commence its Offer by way of newspaper advertisement on 20 August 2010. The Offer will be open for acceptance until 11:59 p.m. (EDT) on 19 October 2010, unless the Offer is extended at the sole discretion of BHP Billiton... BHP Billiton has engaged J.P. Morgan Securities Inc., TD Securities, Banco Santander, Barclays Capital (the investment banking division of Barclays Plc), BNP Paribas and The Royal Bank of Scotland Group Plc as financial advisors in connection with this Offer.

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